-->

25% Yield... Too Good to Be True?

Post a Comment
Shield

AN OXFORD CLUB PUBLICATION

Wealthy Retirement

View in browser

SPONSORED

Putin's Spiteful Behavior Could Make Americans Rich??

Putin's Spiteful Behavior
 

Source: www.kremlin.ru

 

One company is already generating record profits. In fact, Wall Street projects one $30 stock will rise to $280 in just 18 months... all thanks to a HUGE mistake by Russia's president. Here's what you need to know...

Why This Big Yielder Will Cut Its Dividend

Marc Lichtenfeld, Chief Income Strategist, The Oxford Club

Marc Lichtenfeld

San Juan Basin Royalty Trust (NYSE: SJT) is an unmanaged trust that receives royalties on the production and sale of oil and natural gas from the San Juan Basin in northern New Mexico.

Some of the financial websites show that the trust yields as much as 25%.

San Juan Basin Royalty Trust pays a monthly dividend. If you annualize May's $0.0527 per share dividend, you get a yield of 7.6%.

The reason for the sky-high yield noted by the websites is March's $0.4097 per share dividend and February's $0.2498 per share payout.

You don't have to worry about the company paying out more in dividends than it takes in. Royalty trusts basically just pass the royalties they collect, minus any small administrative costs, on to investors.

There's no management team trying to gain confidence from Wall Street or entice shareholders to stick around by paying a too-high dividend.

SPONSORED

Legendary Investor Paul Tudor Jones Predicts "Violent Death" for Putin

Putin Stressed
 

Source: Wikimedia Commons

 

Few people know this, but Putin just made the single biggest mistake of his life. It's not invading Ukraine... but it could have a profound effect on world markets. A market expert breaks down the opportunity here.

If natural gas prices rise and royalties increase, so will the payments to investors. And if gas prices decline, the dividend will too.

That makes this monthly dividend variable. Each month's payment will be different from the last one. And you can see in the chart below how wildly the dividend fluctuates.

San Juan Basin Royalty Trust's Variable Monthly Dividend
 

But does this variable dividend policy work in investors' favor?

Let's find out...

HOW SAFE IS THIS YIELD?
The Oxford Club and Opportunity Travel & Events present Explore the Wonders of Israel (October 15-25, 2023), Jordan (October 25-29, 2023) and Egypt (October 28-31, 2023)

The Only Stock That Could Rocket in Today's Market

Stock Legend Takes Down Biden Economy in Epic Video

SPONSORED

Biden to "retire" U.S. dollar?

Biden Signing

A former advisor to the CIA and Pentagon now believes President Biden plans to retire the U.S. dollar we know.

And replace it with what he calls "Biden Bucks." It is underway.

On March 9, 2022, Biden signed Executive Order 14067, which could pave the way for "Biden Bucks."

Click to see how to save your investment and retirement accounts.

Related Posts

There is no other posts in this category.

Post a Comment

Subscribe Our Newsletter